March 13, 2013

Project Connect

Introduction Meeting Minutes Approval Project Status Report IV&V Update by Ernst & Young Other Business Public Comments Review of Actions from Meeting Scheduling of Next Meeting – April 10 Adjourn

Project Connect 2

Budget and Timeline Project Update Current and Upcoming Activities Risks and Issues Key Project Dates

Project Connect 3

Project Connect 4

Rebaselined Budget

Allocated Contingency & Management

Reserves

Supplemental Budget

RequestsREA Grant

Updated Project Budget

Estimate at Completion

Project Variance

Project FundingOPS 217,770 0 0 0 217,770 233,238 (15,468)Expenses 7,240,310 1,194,090 0 0 8,434,400 8,370,724 63,676OCO (Hardware) 1,441,425 (405,527) 0 0 1,035,898 949,050 86,847Contracted Services

Project Management & SupportProject Management Office 2,019,270 0 0 0 2,019,270 2,019,270 0Project & Operational Support 3,694,500 (356,638) 648,850 119,474 4,106,186 4,019,673 86,513Outside Legal 230,652 0 0 0 230,652 230,652 0ITN Development 512,700 0 0 0 512,700 512,700 0Business Transition 3,945,916 88,463 0 134,730 4,169,109 4,207,381 (38,272)Other Contracted Services 164,790 90,000 0 0 254,790 245,156 9,634

Total Project Management & Support 10,567,828 (178,176) 648,850 254,204 11,292,706 11,234,831 57,875IV&V Services 2,019,940 0 0 0 2,019,940 2,019,565 375Benefits Realization Strategy 239,391 1,915 0 0 241,306 239,391 1,915Organizational Change Management 467,520 8,383 0 0 475,903 467,520 8,383System Integrator (SI) Services 28,285,557 (585,848) 433,500 1,054,586 29,187,795 29,187,795 0SI Hardware & Software 9,095,608 (828,563) 0 0 8,267,045 8,203,495 63,550Project Reserves 122,695 0 0 0 122,695 0 122,695

Project Funding Totals 59,698,044 (793,725) 1,082,350 1,308,790 61,295,458 60,905,610 389,846Contingency/Management Reserves 3,100,651 3,894,376 697,460

Total Project Funding 62,798,694 3,100,651 2,006,250

Overall Project Budget & Estimated Variance

<- Geographic Solutions, WF Integration PM & Misc. Deloitte CRs

Project Connect 5

$61,295,457 60,905,611

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

FY11Q1

FY11Q2

FY11Q3

FY11Q4

FY12Q1

FY12Q2

FY12Q3

FY12Q4

FY13Q1

FY13Q2

FY13Q3

FY13Q4

FY14Q1

FY14Q2

FY14Q3

FY14Q4

FY 15 Q1

FY 15 Q2

Project Funding - Cumulative by Quarter

Budget Forecast Committed

Budgeted:Forecast:Variance: $ 389,846

Current Contingency $3,894,376 Current Budget Positive Variance $389,846 Available Budget $4,284,222

Potential Allocations • RAAC/SIDES Contingency (TBD) • Outstanding Critical Change Requests (7) (TBD) • Post Release 1.0 Change Requests and DEO Change Request Support (TBD) • SSRC Off-Site Tape Backup (TBD)

Project Connect 6

Project Connect 7

Plans were to finalize the Go live date by April 1 Development and Testing efforts have been

progressing ahead of schedule Need to lock in training facilities and also

schedules with our outside system partners (ICON, DOR, etc.)

Need to resolve any scheduling conflicts with other competing initiatives (e.g. Data Center Consolidation (DCC))

Project Connect 8

Looked at a broad array of options from September 1st onward

Goal to achieve the benefits of converting on a month end or better yet a quarter end

Potential conflict with DCC during the Labor Day holiday (September 2)

From an operational, legacy systems, interfaces, and project perspective, the project team is now targeting an October 1, 2013 Go Live! • Four weeks earlier then planned

Project Connect 9

This will allow us to produce the September Month-end and 3rd Quarter reports from Legacy and start clean with Connect

Allows competing pressures to begin to schedule around our October 1 implementation

Dependent on a successful System Test Challenges

• Addressing open Critical Change Requests

Project Connect 10

200 Appeals Commission (RAAC) • Scheduled for Release 1.0 Go Live

16 State Information Data Exchange (SIDES) • Scheduled for Release 1.1 – December 2013

Both CRs are part of Amendment 9

Project Connect 11

213 Call Center Outbound Dialing 235 Expand Security Role Administration 238 Address Claimants w/ Warrant Status 217 EUC/RES Requirements 221 Mask Employer Information 236 Changes due to Sequestration 233 SB222 - Appeals and RAAC

• If SB222 is approved for October 2013 it will delay Go Live by 9 months

These will need to be in a future Amendment

Project Connect 12

Project Connect 13

Project Connect 14

Note: Claimants that normally file on Thursday will be allowed to file on Monday through Wednesday

Amendment 9 (RAAC/SIDES Design) has been approved

Digital Audio Recording System (DARS) Design has been approved and back on schedule

Language Translations on schedule • Reviewing quality control issues with voice talent

for the IVR prompts

Project Connect 15

Contact Center Solution/IVR/VoIP • Tracking on schedule towards a August 26 cut-over

of calls to the Contact Center • Key completed activities include eMail routing review and mailbox setup WFM configuration updates Outbound Call CR Impact Analysis

Kicked off the full Communications Strategy Planning Process this week • Linking our External and Internal communications

plans

Project Connect 16

Non-Core Development is ahead of plan with Sub-System Testing slightly behind schedule

Project Connect 17

41 73 122 173 198 208 19481 3346

113 124 138 153

0 0 0 00

200

400

600

800

1000

1200

1-Feb 8-Feb 15-Feb 22-Feb 1-Mar 8-Mar 15-Mar 22-Mar 29-Mar

Sub-System Test ExecutionPlanned vs. Actual

Planned Weekly Run

Actual Weekly Run

Planned - Cumulative

Actual - Cumulative

Overall 2,683 of 4,244 (63%) scripts have been executed with a 78% pass rate • Exceeding the 60% planned pass rate

Projecting 600 defects from Cycle 1 testing • Initial projection was between 800 and 1,000

The Development team has 1,188 defects in their queue • Plan is in place to reduce this number to <200 by

end of System Test • Development has the capacity and performance to

resolve 200/250 defects/week

Project Connect 18

Execution continues ahead of original plan

Project Connect 19

Overall DEO script execution is slightly ahead of plan • 754 scripts executed with 80% pass rate v. 78% for Deloitte • Implementing quality assurance reviews of DEO executed scripts

Project Connect 20

Exit Criteria from System Test (into UAT) • 100% of the System Test scripts have been executed with a 96% pass rate • Open defects cannot include more than 5 Fatal and 50 Severe defects

Project Connect 21

0

500

1000

1500

2000

2500

Projected Defect Trend

Actual Defect Trend

Defect TrendProjected vs. Actual

Performance Testing on track to meet the overall test execution schedule

Completed testing of 35% of all prioritized transactions • Several processes have already met or exceeded the

planned load for production Continuing to work with the Development team

on the highest priority transactions having performance defects and making solid progress in resolving response time issues • Six transactions ranging from 4 to 9 seconds are

currently being addressed • All other transactions are less then 4 seconds

Project Connect 22

On track for System Testing with converted data, beginning with Claims testing

Continue to focus on resolving defects and quality reviews

Resolving FileNet performance issues impacting image load and preparing for initial image conversion

Conversion Team will handle any orphaned records from legacy data purges

Project Connect 23

To be performed during August including normal nightly, weekly, and monthly processing Conversion / Cut Over Dress Rehearsal Understand transition from the Legacy system to

Project Connect Operate in the Production Environment Day-in-the life / Model Office simulation Workflow, operational procedures and hand-offs Validate User Security Roles and Profiles Perform Technical / IT Operations execution and

monitoring Not a defect identification exercise

Project Connect 24

Project Connect 25

Project Activity

Cutover Dress Rehearsal

Daily & Weekly Processing

User Security Roles

IT Operations Validation

Month-End Processing

Preparation of training materials proceeding according to plan

Training tasks are being updated to reflect the October 1 Go Live

Stakeholder Participation • Stakeholder Engagement: March issue of staff newsletter

from the project (The Connection) is ready for distribution

• Process Documentation and Workshops: Adjudication team has completed its Today/Tomorrow template and key changes document in preparation for workshops; all teams to complete by March 13

50 Trainers participated in a two-week orientation and are now part of the System Test team

Project Connect 27

Total Functional CRs Received 248 Withdrawn/Closed (109) Total CRs 139 Amendment 7/8/9 (In Process) 41 DEO Development (In Process) 9 Critical for Go Live 7 Next up for Post Release 1 (On Hold) 18 On Hold Non-Critical 64 Total CRs 139

Project Connect 40

Open risks being actively monitored: • Risk #24 Pending Legislation 2013 Session • Risk #29 Availability of External System Resources • Risk #31 Creole/Spanish Translation • Risk #34 Identifying Training Facilities • Risk #35 Updating SOP Documentation • Risk #37 Co-Development Efforts (Deloitte/DEO) • Risk #38 Review priority of Amendment 7 Reports • Risk #39 Federal Extension of EUC/RES • Risk #40 Legacy System Changes • Risk #41 Critical CRs may Jeopardize Go Live

No Open Issues

Project Connect 41

March 15 Cycle 1 -Core Functionality Tested April 10 ESC Meeting May 8 ESC Meeting May 10 Cycle 2 - All Functions with Production Data Tested June 12 ESC Meeting June 28 Cycle 3 - All Testing Complete July 10 ESC Meeting July 18 Development/Test Phase Gate

Project Connect 42

Project Connect 43

Introduction Meeting Minutes Approval Project Status Report IV&V Update by Ernst & Young Other Business Public Comments Review of Actions from Meeting Scheduling of Next Meeting – April 10 Adjourn

Project Connect 44

FY12/13 Spend Plan Graph FY12/13 Spend Plan Details

Project Connect 45

Project Connect 46

0

5

10

15

20

25

Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13

Mill

ions

FY 2012-2013 Project Funding - Cumulative by Month

FY Budget Forecast Committed

Budgeted: $ 22,356,336Forecast: 22,208,580Variance: $ 147,756

Project Connect 47

Budget Committed Budget Committed Budget Committed Budget Committed Budget Committed Budget CommittedOPS

Funding 17,605 16,078 16,940 15,524 3,735 6,591 3,735 4,424 3,735 3,009 3,735 6,146

ExpensesFunding 44,346 43,375 463,994 218,916 83,825 37,143 83,826 82,437 83,827 210,993 472,277 44,304

OCOFunding 0 2,257 155,000 178,516 0 0 0 0 0 0 1,170,785 0

Contracted ServicesProject Management & Support 487,190 259,065 504,707 287,759 481,910 287,781 481,910 324,164 511,485 305,323 461,510 257,736IV&V Services 46,456 46,456 77,762 77,762 46,456 46,456 46,456 46,456 46,456 46,456 46,456 45,581Benefits Realization Strategy 0 0 0 0 0 0 0 0 0 0 6,388 0Organizational Change Management 0 0 0 0 0 0 0 0 0 0 0 0System Integrator (SI) Services 5,670,467 5,670,467 122,805 122,805 1,922,805 1,922,805 122,805 122,805 1,732,805 1,557,805 122,805 672,805SI Hardware & Maintenance 0 0 0 0 0 (10,040) 0 0 1,282,389 0 0 1,369,638SI Software & Maintenance 0 0 0 0 0 0 0 10,040 40,986 0 0 159,714Project Reserves 0 0 0 0 0 0 0 0 0 0 0 0

Total Contracted Services 6,204,113 5,975,988 705,274 488,325 2,451,171 2,247,002 651,171 503,465 3,614,121 1,909,583 637,159 2,505,474

Total Budget Allocation & Spend 6,266,064 6,037,697 1,341,208 901,282 2,538,731 2,290,735 738,732 590,326 3,701,683 2,123,585 2,283,956 2,555,924

FY 2012-2013 Budget Allocation and Spend by Month - Q1 & Q2Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12

Project Connect 48

Budget Committed Budget Committed Budget Forecast Budget Forecast Budget Forecast Budget ForecastOPS

Funding 3,735 9,608 3,735 9,904 3,735 4,020 3,735 4,020 3,735 4,020 3,735 4,020

ExpensesFunding 44,784 499,977 44,784 66,930 66,284 94,307 66,284 120,135 66,284 96,296 66,284 1,202,397

OCOFunding 0 81,886 0 7,750 0 0 0 500,000 0 63,001 0 0

Contracted ServicesProject Management & Support 455,510 335,851 455,510 376,424 455,510 650,700 455,510 661,950 455,510 650,700 455,514 747,267IV&V Services 46,456 46,956 0 0 46,456 46,456 0 0 46,456 46,456 0 0Benefits Realization Strategy 6,388 0 6,388 0 6,388 11,179 6,388 11,179 6,388 11,179 6,388 11,179Organizational Change Management 0 0 0 0 0 0 0 0 0 0 0 0System Integrator (SI) Services 550,000 158,283 0 0 0 0 550,000 725,000 0 0 0 450,000SI Hardware & Maintenance 0 0 0 0 0 0 0 0 0 0 84,890 0SI Software & Maintenance 0 0 0 0 0 0 0 0 0 0 1,013,200 0Project Reserves 0 0 0 0 0 0 0 0 0 0 0 0

Total Contracted Services 1,058,354 541,090 461,898 376,424 508,354 708,335 1,011,898 1,398,129 508,354 708,335 1,559,992 1,208,446

Total Budget Allocation & Spend 1,106,873 1,132,560 510,417 461,008 578,373 806,662 1,081,917 2,022,284 578,373 871,652 1,630,011 2,414,864

FY 2012-2013 Budget Allocation and Spend by Month - Q3 & Q4Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13